Globalisation means that customers have numerous options available to them when sourcing products. If one product is not available, usually they have options to choose a product that is available. To remain competitive, a CEO or Operations Manager should ensure they have an ample amount of product available to fulfill demand, whether planned or unplanned.
These products may be raw materials, semi-finished products or finished products. To ensure sufficient stock requires a controlled and continuous product flow in the supply chain. In a supply chain, product availability is impacted by various factors. However, among all the numerous factors, freight forwarding has the highest impact if you are buying and selling globally. Leading CEOs and Operation Managers understand that freight forwarding incorporates all transportation modes, including sea freight and air freight along with customs clearance at origin and destination. Mismanagement of freight can disrupt the product flow and impact availability. A proficiently managed freight forwarding operation assists CEOs and Operations Managers to have continuous product flow throughout the supply chain and have perfect availability.
Read on to learn the impact of freight forwarding on product availability and how managing it proficiently will assist your business.
Fast product replenishment
Efficient demand forecasting assists CEOs and Operations Managers anticipate the right market demand to supply products in sufficient quantities. However, in reality, forecasting is tricky. Managers often feel challenged in providing an accurate product quantity for perfect order fulfillment. To assist, a swift freight forwarding solution can assist you in avoiding the loss of a sale. Air freight forwarding provides flexibility so that you can make available your products within a minimum time frame. With air freight forwarding, managers get the chance to replenish the stock level with short notice, as well as this reduces the risk of obsolete inventory.
Seasonal product availability
Seasonality dictates a specific time frame that products need to be available. Product must be available throughout the season to achieve maximum sales. Prior to and beyond that time frame, a product has no use. In addition, CEOs and Operations Managers need to be conscious of an overstocking situation and keep inventory levels optimized. To manage the fine balance between these two conflicting objectives, the various mix of air freight and sea freight should be explored by engaging an experienced and professional freight forwarder. A seasoned freight forwarder can assist you in making the right decision to ensure your products are available throughout the season while keeping costs down and avoiding an overstock situation.
Bulk product availability
To make a product available against the demand is a good idea to terminate obsolete inventory. However, it incorporates additional freight forwarding costs, increased delivery time and could impact sales. Alongside, there is a high chance of delay due to last minute preparations. To avoid these extra burdens, shipping in bulk can be a smart decision. Shipping product based on the forecast, allows businesses to be prepared and fill the demand-supply gap quickly as well as reduce the delivery turnaround time (TAT). Of the available shipping modes, sea freight is the most suitable shipping solution for bulk products. Sea freight provides a hassle-free and economical medium for bulk cargo.
Avoid shortage/excess products with transparency
Replenishment is a continuous process and needs to be monitored to maintain a healthy supply chain. This requires your supply chain to be transparent so that pipeline stock can be managed efficiently to avoid overstocking and stock outs situations. A non-transparent supply chain creates blackouts with product flow and creates ambiguity about product availability. This influences marketing campaigns, supply chain strategies and has a negative impact on sales. Therefore, to keep track of pipeline stock, your freight forwarder’s system should provide you with transparency. A transparent supply chain provides CEOs and Operations Managers with options to determine the most appropriate transportation medium and make an adequate product available to meet demand.
Product availability in global trading scenarios is impacted by freight forwarding. The importance is magnified because products are moving long distances and there is less control while the products are outside your own country. It becomes imperative that you choose your freight forwarding partner carefully. Look for a partner that has proven credentials and experience managing the supply chain challenges you face, including product availability. Modern freight forwarding provides options from the fastest to the most cost-effective and these options assist CEOs and Operations Managers to make their product available in the fastest yet most economic manner.
For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).